After 12 September, smart contracts became a reality in the Cardano network. With the launch of Alonzo Hard Fork Combinator, developers can now create smart contracts in the ecosystem. This helps create decentralized applications (DApps) to provide decentralized finance (DeFi) services.
Given the number of smart contracts created on the network, there is no doubt that we will soon see an influx of new decentralized applications on the network. The project said they support developers in running their projects on the platform by making the Cardano ecosystem as secure and developer-friendly as possible. Developers, in turn, have shown their trust in the network as the number of smart contracts in the ecosystem grows.
Cardano has recorded over 40,000 smart contracts in a few days
On the first day after completing the upgrade, more than 100 smart contracts were created in the first 24 hours. This number in itself was impressive. However, the following days even showed an increasing tendency to create these smart contracts. On Thursday, September 16, the fourth day after Alonzo HFC, the current number of smart contracts in the network reached almost 41 thousand.
So far, most of these smart contracts have been created by developers in an effort to lock their tokens before the release of their decentralized applications. This indicates the number of projects that developers are already working on. With the continuing rise of decentralized finance and as more people move away from other leading smart contract platforms in favor of a cheaper and faster alternative, such as Cardano, more protocols are expected to launch their smart contracts on the network.
Currently, these smart contracts are locked in a time-locked contract that effectively locks them for a period of time until developers are ready to use them. This will give developers the time it takes to develop their protocols, while ensuring their smart contracts for their use.
How it affects the price
The effect of creating many smart contracts on the Cardano blockchain may not be immediately apparent. However, there is no doubt that the speed with which smart contracts are created will have a long-term positive impact on the price of its native ADA asset.
The rise of decentralized finance was one of the main drivers of Ethereum and Solana’s success. In the same way, the DeFi protocols on the Cardano blockchain will also effectively increase the value of its token. This is because once these decentralized applications are running, users will use the ADA to perform transactions on the blockchain.
While users do not necessarily hold ADA coins, they will need to be purchased for trading and payment for transaction fees. This will create demand for the coin in the long run, leading to a higher value of the digital asset.